This document discusses organizational structures and processes for innovation. It begins by explaining how creating value requires understanding how technologies and customer needs will evolve. Effective organizations change structures during periods of disruption. Centralized versus decentralized research and development is discussed, noting that the two issues of the role of central research and commercializing technology cannot be addressed in isolation. The document then examines examples of organizational structures such as matrix teams and centers of excellence, as well as processes like patching business portfolios and enabling cross-business synergies through coevolution. It concludes that relationship processes that encourage open and collaborative innovation between partners can generate multiple innovations through rotating leadership rather than consensus or domineering approaches.
A Benchmark for Open Innovation: How Good is Your Company?Stefan Lindegaard
In this presentation, I share my benchmark views on how open innovation in general has been adapted over the years. The benchmark is based on my free e-book, 7 Steps for Open Innovation.
Procter & Gamble open innovation approach Ideon Open
Presented at the Hands On Open Innovation workshops, this presentation explains why such giant as P&G engages in open innovation. P&G shares its approach to open innovation called Connect & Develop and reveals lessons the company has learned from applying open innovation practices.
More info about the event at http://www.ideonopen.com/events
Open Innovation: An Introduction and Overview (Chalmers)Marcel Bogers
Presentation on "Open Innovation: An Introduction and Overview"
Part of seminar on “Open innovation - managing innovation across organizational boundaries” at Chalmers University of Technology, organization by the Managing-In-Between (MIB) research group at the Management of Organizational Renewal and Entrepreneurship (MORE) division at the Department of Technology Management and Economics (TME).
Description:
What does open innovation really mean? How does it change how we think about innovation processes? What are the managerial and organizational implications? Join us in this seminar to explore these questions with researchers and practitioners active in the field!
About the seminar:
The Managing-In-Between research group at the Department of Technology Management and Economics invites you to an inspiring seminar around open innovation, a topic that has gained increasing interest among researchers and practitioners. This seminar will highlight how the concept of open innovation has evolved, what it actually means, and outline where the research frontier is.
The seminar will feature presentations from one of the prominent researchers in the field of open innovation, Associate Professor Marcel Bogers, University of Southern Denmark as well as researchers from the Managing-In-Between research group at Chalmers, led by Associate Professor Susanne Ollila.
After the initial presentations, we would like to invite the audience to participate in a discussion around the organizational and managerial implications of open innovation for practice. This could be especially interesting to discuss in the Chalmers context where several efforts have been made to increase collaboration and innovation across organizational boundaries, but we still need to further our knowledge of how to support and manage such initiatives.
Source: http://www.chalmers.se/en/departments/tme/calendar/Pages/Open-innovation-seminar.aspx
Corporate Innovation : developing a lean & curious culture : Michel Duchateau...Michel Duchateau
Corporate Innovation : developing a lean & curious culture : Michel Duchateau CreaDelta - Tech Startup Day 2015 - startups.be
How to use hackathons to develop corporate innovation and intrapreneruship ?
What Coca-Cola and Groupe Auchan have learned with hackathons ?
What lean aspects can we focus in corporate innovation ?
When to develop a lean culture ?
What are the differences with a non lean culture ?
What are the trends of 2015 in corporate innovation in a nutshell ?
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Purdue RCODI
From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open Source Software (OSS) Communities presented by Dr. Sabine Brunswicker.
Dr. Sabine Brunswicker presented the latest work on how firms and individuals collaborate in an open source software community in the Red Hat Summit 2016. In particular, she highlighted how firms, whether they are OSS vendors or OSS uses, and also the individual developer, can support each other in order to successfully integrating new features in the software. Red Hat Summit is the premier open source technology event to showcase the latest and greatest in cloud computing, platform, virtualization, middleware, storage, and systems management technologies.
Open source software (OSS) is booming. Working the OSS way has become the new standard of software development. This trend has also changed the nature of OSS communities. While originally the domain of hobbyists and hackers, OSS communities are now attracting the participation of firms, both small and large ones. Indeed, OSS communities offer firms the opportunities to engage in what experts call ‘open innovation’. They open up to OSS communities and participate in OSS communities in order to create direct and indirect corporate innovation benefits. This presentation will focus on open innovation for new ‘industrial’ OSS communities, which bring together OSS vendors, OSS customers, as well as independent developers. One of the prominent examples of these new OSS communities is the OpenStack community in the area of cloud computing. These communities create unique opportunities not only for vendor but also for OSS customers to actively shape the agenda of the development activities and also implement this agenda. At the same time, these communities also expose firms to new management challenges given the size and diversity of the actors involved. In my talk I will provide very recent insights gained from a big data analysis focused on the ‘inner working mechanism’ of the OpenStack community. A deep dive into the contribution behavior of different vendors and OSS customers suggest that firms need to align their open innovation strategy with their idiosyncratic innovation interest, the development capabilities of their own employees, and their role in the community. For example, firms that seek to drive more radical changes in the OSS software should behave differently than those firms that are more focused on immediate quality improvements. In sum, the presentation will give those firms, which already participate in new ‘industrial’ OSS communities, as well as those ones, that only use OSS products, practical guidelines in how to use open innovation for the new ‘breed’ of OSS communities. Concrete examples will depict what kinds of features contributors suggested and how OSS vendors, OSS customers and independent developers collaborate in implementing those features.
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...Stefan Lindegaard
Here you can check out my PowerPoint deck for my new concept:
7 Steps for Open Innovation: Grading Your Company’s Open Innovation Capabilities
The premise is that if your company is not already fully engaged with open innovation efforts, it is way behind. This is evident by looking at the number of companies around the globe that today embrace the use of external partners and input into their innovation efforts.
But even though companies continuously launch new initiatives designed to help them leverage the power of outside knowledge and resources to drive innovation forward, there is a sense within these companies that they can do better and take this new innovation paradigm to an even higher level.
They are also eager to get external perspective to make sure they are maximizing results by using best practices in all aspects of their open innovation efforts.
To help companies with this evaluation, I have developed a seven-step assessment tool that helps them evaluate these key areas:
1. Common Language and Understanding, Motivation, Mandate and Strategic Purpose
2. Assets and Needs
3. Value Pools and Channels
4. Internal Readiness
5. External Readiness
6. New Skills and Mindset
7. Communications Strategy
This assessment tool will help companies identify where they may be falling short in any of these key areas as well as provide ideas and insights on how to make the necessary improvements that will give more power to their open innovation efforts.
This is still work in progress, but you can get an idea of what this is about by checking out my presentation here
It would be great to hear your early feedback on the content itself as well as your thoughts on what I should do with the concept itself. Maybe it would be more valuable for the open innovation community as some kind of an open source project? What do you think?
21st Century University feasibility study Jouni Eho
This feasibility study looked at the disruption taking place in the higher education space and sketched an MVP prototype of a radical new 21UNI concept to be tested in Kotka, Finland
A Benchmark for Open Innovation: How Good is Your Company?Stefan Lindegaard
In this presentation, I share my benchmark views on how open innovation in general has been adapted over the years. The benchmark is based on my free e-book, 7 Steps for Open Innovation.
Procter & Gamble open innovation approach Ideon Open
Presented at the Hands On Open Innovation workshops, this presentation explains why such giant as P&G engages in open innovation. P&G shares its approach to open innovation called Connect & Develop and reveals lessons the company has learned from applying open innovation practices.
More info about the event at http://www.ideonopen.com/events
Open Innovation: An Introduction and Overview (Chalmers)Marcel Bogers
Presentation on "Open Innovation: An Introduction and Overview"
Part of seminar on “Open innovation - managing innovation across organizational boundaries” at Chalmers University of Technology, organization by the Managing-In-Between (MIB) research group at the Management of Organizational Renewal and Entrepreneurship (MORE) division at the Department of Technology Management and Economics (TME).
Description:
What does open innovation really mean? How does it change how we think about innovation processes? What are the managerial and organizational implications? Join us in this seminar to explore these questions with researchers and practitioners active in the field!
About the seminar:
The Managing-In-Between research group at the Department of Technology Management and Economics invites you to an inspiring seminar around open innovation, a topic that has gained increasing interest among researchers and practitioners. This seminar will highlight how the concept of open innovation has evolved, what it actually means, and outline where the research frontier is.
The seminar will feature presentations from one of the prominent researchers in the field of open innovation, Associate Professor Marcel Bogers, University of Southern Denmark as well as researchers from the Managing-In-Between research group at Chalmers, led by Associate Professor Susanne Ollila.
After the initial presentations, we would like to invite the audience to participate in a discussion around the organizational and managerial implications of open innovation for practice. This could be especially interesting to discuss in the Chalmers context where several efforts have been made to increase collaboration and innovation across organizational boundaries, but we still need to further our knowledge of how to support and manage such initiatives.
Source: http://www.chalmers.se/en/departments/tme/calendar/Pages/Open-innovation-seminar.aspx
Corporate Innovation : developing a lean & curious culture : Michel Duchateau...Michel Duchateau
Corporate Innovation : developing a lean & curious culture : Michel Duchateau CreaDelta - Tech Startup Day 2015 - startups.be
How to use hackathons to develop corporate innovation and intrapreneruship ?
What Coca-Cola and Groupe Auchan have learned with hackathons ?
What lean aspects can we focus in corporate innovation ?
When to develop a lean culture ?
What are the differences with a non lean culture ?
What are the trends of 2015 in corporate innovation in a nutshell ?
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Purdue RCODI
From Open Source Towards Open Innovation: Fostering Corporate Innovation with Open Source Software (OSS) Communities presented by Dr. Sabine Brunswicker.
Dr. Sabine Brunswicker presented the latest work on how firms and individuals collaborate in an open source software community in the Red Hat Summit 2016. In particular, she highlighted how firms, whether they are OSS vendors or OSS uses, and also the individual developer, can support each other in order to successfully integrating new features in the software. Red Hat Summit is the premier open source technology event to showcase the latest and greatest in cloud computing, platform, virtualization, middleware, storage, and systems management technologies.
Open source software (OSS) is booming. Working the OSS way has become the new standard of software development. This trend has also changed the nature of OSS communities. While originally the domain of hobbyists and hackers, OSS communities are now attracting the participation of firms, both small and large ones. Indeed, OSS communities offer firms the opportunities to engage in what experts call ‘open innovation’. They open up to OSS communities and participate in OSS communities in order to create direct and indirect corporate innovation benefits. This presentation will focus on open innovation for new ‘industrial’ OSS communities, which bring together OSS vendors, OSS customers, as well as independent developers. One of the prominent examples of these new OSS communities is the OpenStack community in the area of cloud computing. These communities create unique opportunities not only for vendor but also for OSS customers to actively shape the agenda of the development activities and also implement this agenda. At the same time, these communities also expose firms to new management challenges given the size and diversity of the actors involved. In my talk I will provide very recent insights gained from a big data analysis focused on the ‘inner working mechanism’ of the OpenStack community. A deep dive into the contribution behavior of different vendors and OSS customers suggest that firms need to align their open innovation strategy with their idiosyncratic innovation interest, the development capabilities of their own employees, and their role in the community. For example, firms that seek to drive more radical changes in the OSS software should behave differently than those firms that are more focused on immediate quality improvements. In sum, the presentation will give those firms, which already participate in new ‘industrial’ OSS communities, as well as those ones, that only use OSS products, practical guidelines in how to use open innovation for the new ‘breed’ of OSS communities. Concrete examples will depict what kinds of features contributors suggested and how OSS vendors, OSS customers and independent developers collaborate in implementing those features.
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...Stefan Lindegaard
Here you can check out my PowerPoint deck for my new concept:
7 Steps for Open Innovation: Grading Your Company’s Open Innovation Capabilities
The premise is that if your company is not already fully engaged with open innovation efforts, it is way behind. This is evident by looking at the number of companies around the globe that today embrace the use of external partners and input into their innovation efforts.
But even though companies continuously launch new initiatives designed to help them leverage the power of outside knowledge and resources to drive innovation forward, there is a sense within these companies that they can do better and take this new innovation paradigm to an even higher level.
They are also eager to get external perspective to make sure they are maximizing results by using best practices in all aspects of their open innovation efforts.
To help companies with this evaluation, I have developed a seven-step assessment tool that helps them evaluate these key areas:
1. Common Language and Understanding, Motivation, Mandate and Strategic Purpose
2. Assets and Needs
3. Value Pools and Channels
4. Internal Readiness
5. External Readiness
6. New Skills and Mindset
7. Communications Strategy
This assessment tool will help companies identify where they may be falling short in any of these key areas as well as provide ideas and insights on how to make the necessary improvements that will give more power to their open innovation efforts.
This is still work in progress, but you can get an idea of what this is about by checking out my presentation here
It would be great to hear your early feedback on the content itself as well as your thoughts on what I should do with the concept itself. Maybe it would be more valuable for the open innovation community as some kind of an open source project? What do you think?
21st Century University feasibility study Jouni Eho
This feasibility study looked at the disruption taking place in the higher education space and sketched an MVP prototype of a radical new 21UNI concept to be tested in Kotka, Finland
Maximising the opportunities offered by emerging technologies within the chan...Livingstone Advisory
The Australian University sector is heading down the path of seemingly inevitable and fundamental change in both its operating model and role within society. The forces at play are numerous and diverse, fueled in part by the capabilities of modern technologies. These include factors such as increasing global competition for tertiary students, the shift towards a self-funded corporate operating model whilst having to retain academic independence and rigor – all in an environment of the increasing commoditisation of knowledge and intellectual property through emerging vehicles such as MOOCs (Massive Online Open Courses).
In the midst of these structural changes, how well Australian Universities navigate through the current swathe of emerging and potentially disruptive technologies whilst mitigating the longer term systemic risks associated with their adoption is not necessarily a trivial exercise.
In this session, Rob Livingstone offered some practical insights into how CIOs of ‘the University of the future’ can play an active part in helping their institutions thrive in the new environment by maximising the upside potential of new and emerging technologies with known cost and risk, whilst simultaneously managing the multiple versions of reality that exist in the new IT environment.
Strength and Weaknesses of Innovation ImplementationJeovan Figueiredo
Apresentação de artigo submetido e aprovado na 25th Annual Conference of POMS (Atlanta, USA, 2014). Artigo completo disponível em http://www.pomsmeetings.org/EventsNet/?pr=1&ev=51
Berkeley Method of Innovation LeadershipIkhlaq Sidhu
Berkeley Method of Innovation Leadership. A method and language to adapt, do new things, change culture, match strategy, set innovation mindset and psychology.
Looking for a way to separate yourself from the crowd? Taking on an intrapreneurship mindset may be just the answer you need. This webinar delves into what intrapreneurship really means and how developing entrepreneurial characteristics can be beneficial to your career success. The webinar is presented by USQ staff member, Dr Paul Newbury.
To see more from the Beyond the Books Online Series, visit our website. https://www.usq.edu.au/webinars
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
2. Creating Value with Effective
Organization
Professor Jason Davis
MIT Sloan School of Management
3. Creating Value:
• Understand how technologies will evolve
– (Both your own and those on which you rely)
• Understand how customer needs will evolve
• Use technologies to develop world class products
and services that meet customer needs
– How?
• Get lucky…works once or twice
• Do it consistently with effective Organization Structures
and Processes
– e.g., Apple, Google
4. Effective Organization changes
during discontinuities
How do we manage
incremental innovation?
Performance
How do we manage
discontinuous innovation?
Time
5. Illustrating the problem: to centralize
or decentralize R&D?
• Answering this question involves two major
problems:
• The role of CR&D
• Commercializing the technology
• These two issues cannot be addressed in
isolation
6. Research before the World Wars
Goal: Understand the world
Incentive: Make $$
First “gentlemen”
& then
Universities,
Foundations
Firms
Incentive: prestige,
fun, the social good
Goal: Make the widget work
7. Research before the World Wars
“Basic”, “Curiosity driven”
research
• Researchers motivated by the
intrinsic interest of the
problem,orientated to their
peers, not to application
• Choice of problems dictated by
individual researchers on the
basis of curiosity
“Applied” research
• Researchers motivated by the
desire to make money, have an
impact on the world
• Choice or problems motivated
by the needs of the market
place
8. Research before the World Wars
• “Basic” research makes enormous progress, but
few firms invest in it.
– Except the German chemical industry
• Many major technological advances driven by
engineers “tinkering”
– Steel, Steam
• And technological advances that do use science
use old, publicly available science
– Electricity
– Telephony
9. : prestige,
First “gentlemen”
& then
Universities,
Foundations
Sputnik and the World Wars
Goal: Understand the world
Goal: Make the widget work
Incentive
fun, the social good
Firms
Radar
The Atom Bomb
Penicillin
The Man on the Moon Incentive: Make $$
10. After the Wars
Goal: Understand the world
Goal: Make the widget work
Incentive: prestige,
fun, the social good
Incentive: Make $$
Universities,
Foundations
Traditional
Applied Research
NASA
DOD
Office of
Naval Research
NIH
Central
Research Labs
11. Corporate Research Labs in the Golden
Age
• Bell Labs
• RCA Sarnoff Labs
• Xerox Parc
• IBM & the Watson Labs
• GE
• Alcoa
• DuPont
12. The Golden Age Research Model:
“Build it and they will come”
Do the very best science
Make major
breakthroughs
Take them to the market
And get really rich
For Example:
The transistor
The CAT scanner
Cohen/Boyer patent
Nylon
Protease Inhibitors
13. Core assumptions of “golden age”
research
• Curiosity driven – understand the problems
and the applications will follow
• Not overly constrained by financial or cost
goals
• Hire the very best people and give them
freedom
• Stay closely connected to the university and
to the community of public science
14. More recently:
The Golden Age model in question
• Many firms unable to capitalize on major
discoveries, or benefits take years to emerge:
– The RCA disc
– Xerox PARC
– Kevlar
– Lucent & Bell Labs
• A significant number of breakthroughs come
through close user/market contact (i.e., Open
Innovation)…
• …and technology collaborations between firms
(i.e., Collaborative Innovation).
– Intel/MSFT, HP/Cisco, Apple/Google, etc.
15. Some firms continue to fund central
research aggressively
“Basic”
or “fundamental”
science
Genomics,
Photonics
Msoft, P&G
“Applied”
research
16. But others have moved away from
central research completely
“Basic”
or “fundamental”
science
Intel
“Applied”
research
17. AR= Applied Research
PD = Product development
A = Acquisitions
Or experiment with alternative
organizational forms
AR= Applied Research
PD = Product development
A = Acquisitions
Science
AR AR AR
PD PD PD
DisplayTechnologies
Telecommunications
SpecialtyMaterials
A A A
Science
AR A AR
R
PD PD PD
A A A
Telecommunications
DisplayTechnologies
SpecialtyMaterials
18. Other firms have experimented with
hybrid organizational structures
ƒ Confusion of roles
ƒ High overhead
ƒ Powerful individuals tip the
balance of power
ƒ Worst of both worlds
ƒ Confusion of team roles
ƒ Shortage of good project
management
ƒ Death by many teams
ƒ Degradation of fxnl skills
ƒ Difficult inter-unit
communication
ƒ Restricted view of whole
ƒ Can become too removed
from the business
Cons
ƒ Focused attention to multiple
objectives
ƒ Best of both worlds:
coordination and
specialization
ƒ Focused cross functional
coordination
ƒ More efficient
development
ƒ Development of team and
management skills
ƒ Supports necessary scale
for critical technologies
ƒ Manage career paths
ƒ Avoid redundancy
Pros
MatrixTeamsCenters of Excellence
Heavyweight Project Team
Market
MFGMKGENGINEERING
Degree of Team
Leader Influence
Team
Leader
Product
Concept
BU 1 BU 2 BU 3
Ceo
R&D Area 1
R&D Area 2
R&D Area 3
BU A BU B BU C
Ceo
Function 1
Function 2
Function 3
19. Strategic Challenge: Changing Environments
are Unpredictable and Ambiguous!
SOURCES IMPLICATIONSIMPLICATIONS
•Planning is limited
market evolution are hard
to predict!
•Future S-curves and
•Reacting is insufficient
•Traditional strategies of
“defend a position” and
•Blurred timing and paths
“leverage core
from products to business
•Shifting competitive basis,
competence” are
models
incomplete
•Lack of control over key •Shift from “closed” internal
technology resources innovation to “open”
18
innovation with partners
20. Potential Solution: Organizational
Structures that respond to change
Organizational
Structures
enable
coordinated
responses to
environmental
change by
shaping action
in real-time
Unit NetworksUnit Networks
Alliance NetworksAlliance Networks
HierarchyHierarchy
RolesRoles
RulesRules
21. Amount of Organizational Structure can
vary greatly!
LowLow MediumMedium HighHigh
Hierarchy
Hierarchy
RulesRules
Unit NetworksUnit Networks
Alliance Networks
Alliance Networks
22. Inverted U‐shaped Relationship btwn
the Amount of Structure and
Performance
•Fundamental
Relationship
illustrates the
tension between
efficiency and
flexibility
•Observed in
multiple industries
and for multiple
types of structure:
• Hierarchy
• Roles
• Rules
• Networks
Chaotic ConstrainedConstrained
23. New Modeling and Evidence suggests
Asymmetry and Dependency on
Market Dynamism
• Asymmetry:
more forgiving
on the side of
too much
structure
• Optimum is less
structured and
more severe in
less predictable
environments
24. Examples: Simple Rules in Dynamic
Markets
Company Simple rules
•Priority Rules helped Intel shift from DRAMs to
Intel® Microprocessors
•Simple Rules about minimum project size
•Copy Exactly
•Clear ranking molecules types as research
Pfizer®
priorities
•Maximum number of molecule types pursued at
any one time
•Projects “killed” according to step charts
Miramax
Films®
The Crying Game
Pulp Fiction
The English Patient
Life is Beautiful
Shakespeare in Love
•Movies must
–Center on a basic human condition and
flawed, but sympathetic character
–Have a clear beginning, middle, and end
•Disciplined financing (50% more efficient than
industry standard)
25. Explains mysterious organizational
phenomena:
• Liability of newness: less structured entrepreneurial
firms can “collapse from within” while large firms w/
more structure can “muddle through” with little
innovation
• Maintaining optimal structure is more precarious
(more V‐like than U‐like!) in unpredictable markets:
– Emerging markets
– High‐technology industries
• Effective strategy is more simple in highly dynamic
markets
– Less structure enables more flexible responses
26. Key Lessons about Organization
Structure
• Managers need to manage not only the Content
but the Amount Structure
• Employees can (and sometimes should) subvert
structures!
• Structure is merely a constraint on actions… must
be combined with improvisation and creativity to
produce innovations.
• Organizational Processes that change over time
are as strategically important as Organizational
Structures that do not…
27. …All R&D structures have limitations that can (in principle) be managed
with the right processes
Making Central Research more Decentralized Making Decentralized Research more Central
• Institute “contracting” mechanism whereby
Business Units can invest their R&D dollars by
sponsoring projects in central Research
• Create Councils comprising senior technical
members (e.g. TDOs) from the business units to
win endorsement for Research programs and
ensure relevance
• Provide communication mechanisms for central
Research to showcase their programs
(conferences, “technology fairs”, “catalogs”,
“trolling”)
• Institute funding mechanisms that require
project transfer to the business at a future date
or require projects to win matching funds from
the business
• Support internship programs that lend
researchers to the businesses
• Organize by product technology
• Employ Portfolio process that
ensures balance between platforms,
derivatives, and breakthroughs
• Create cross‐Business Councils
responsible for synergies between
research done within the businesses
• Fund outside research in universities,
start‐up companies, or other outside
organizations
• Co‐locate Decentralized R&D
resources within central labs to
promote synergy and preserve critical
mass in scientific disciplines
28. Comparing Org Structures & Org
Processes
• Organizational Structures: repeatable patterns of
behavior that are (nearly) always invariant
– Act as a constraint on action; enable efficient
coordination between multiple employees
– Must be combined with real‐time improvisation and
creativity to execute new opportunities
• Organizational Processes: sequenced patterns of
behavior that change & are contingent on time/place
– Strategic impact of effective versus ineffective
processes less well explored…
– These “best practices” or “secret sauce” are so hard to
imitate (e.g., Apple’s design process), that they may
provide more competitive advantage than structural
solutions that all can copy (e.g., Matrix org charts)
29. Patching: Restitching Business
Portfolios
Common experiences Myths Best practice
•Coordinating
across
businesses to
exploit
opportunities is
slow and
political
•Businesses are
behind others in
capturing
opportunities
•Critical issue is
business focus
(e.g., customer,
products, geos)
•Adjustment of
business
portfolio to
match markets
occurs in rare,
major
restructurings
•Regard match of
business portfolio to
markets as temporary
• Pay attention to SCALE
of businesses as well as
focus
•Patching executive at
multibusiness level
•Economies of scale
AND agility
28
30. Patching: Restitching Business Portfolios
Company
Managing scale and focus
•Patches customer segments and products
Dell® •In 1994, 2 customer patches then 4 then 8 now about 18
•Decreased patch size with increasingly uncertain market
Hewlett
Packard®
•Built printer businesses by frequently realigning divisions
to market opportunities - add, exit, combine,split
•Shifts products and businesses among divisions as
needed
•Prototypical patching results
– From instruments to computing, from computing to
printing and desktop publishing, and to digital
photography
•Took market lead in Japan by repatching traditional
recreational vehicle businesses (minivans, station wagon,
Honda® compact sedans, SUV) into three new, original patches
29
31. Patching example – Honda’s domestic
recreational vehicle (RV) business
Traditional RV
market patching
Minivans
Station wagon
Compact sedans
Sport utility vehicle
30
Honda refreshed
patching
Odyssey:
Shorter than a
minivan but bigger
than station wagon
Criteria:
Compact-cum-wagon
with “Godzilla”
styling
CR-V:
Similar to Jeep
Cherokee but smaller
and built on the
Honda Civic platform
32. Patching example – Dell
1994 1996 1998
Large customers Large companies Global enterprises
Small customers Midsize companies
Government and
education
Small customers
Large companies
Midsize companies
Federal
State and local
Education
Small companies
Consumers
31
33. Coevolving: Cross‐business Synergy
Common experience Myths Best practice
•Senior
management
wants cross-
business
synergies, but is
unsuccessful
•Orchestrating
collaboration
across businesses
is a time sink
•Successful
companies operate
as a centrally
controlled portfolio of
related businesses
•Successful
companies operate
as a portfolio of
independent
businesses
•A few temporary
collaborations with
exceptional payoffs
•Manage NUMBER of
collaborations, not just
focus
•Senior managers set
context for collaboration,
businesses decide
•Synergies AND individual
business success
32
34. Coevolving: Cross‐business Synergy
Company A few collaborations
•“Multiplier effect” of sharing movie characters across
businesses
Disney •Selective collaboration (e.g., Disney characters not shared
with Touchstone)
•Senior executives set collaborative context (e.g., synergy
meetings, calendar, synergy managers, training boot
camp), but business managers make the choices
•Broadcast identity of best practice stores for specific
Kroger capabilities (transactive memory)
•Store managers select best practices most appropriate for
their stores (receiver-based communication)
•“Key to earning a big return is to replicate knowledge” –
BP John Browne, CEO
•SBUs belong to 1 of 4 peer groups for knowledge
exchange, facilitated by electronic yellow pages
•Participation is voluntary and comes out of SBU budget
33
35. Relationship Processes: Towards Open
& Collaborative Innovation
Control
Uncontrolled
Open
Innovation
Closed
Innovation
Collaborative
Innovation
Inside Outside
36. Relationship Processes & Collaborative
Innovation
• Technology Collaborations between large established firms
are becoming the predominant way that innovative
component technologies are made in IT:
– Google & Apple: iPhone collaborations: gMaps, YouTube player
– Intel & Microsoft: Wintel technologies
– Sun & SAP: Netweaver Java Platform
• What are the most effective Organziational Processes for
managing these relationships?
– Focus on Strategic Decision Making, Social Networks, Time‐
Pacing
– Examined 8 collaborations between 10 large firms in the IT
sector
37. Domineering Leadership
•De-motivated weaker
partners do minimum
required by contracts
•Achieves stronger
partner’s more routine
objectives, but with…
•No innovation!
Phase
Strategic
decisions
made by...
1 2 3 4
100%
100%
PartnerBPartnerA
Image by MIT OpenCourseWare.
38. Consensus Leadership
•Unclear Roles and
Responsibility
•Many meetings!
•Slow development
•“Lowest common
denominator” decision
making
•No Innovation
Phase
Strategic
decisions
made by...
1 2 3 4
100%
100%
PartnerBPartnerA
Image by MIT OpenCourseWare.
39. Rotating Leadership & Collaborative Innovation
•Highly motivated
partners contribute best
technologies and IP
•Breaks inward focus of
central-planning by
single firms
•Rotations encourages
recombination of
technologies over time,
leading to…
•Generation of Multiple
Innovations:
•New components
•New platforms
•New patents
•Revenue growth: up
to $1B+
Phase
Strategic
decisions
made by...
1 2 3 4
100%
100%
PartnerBPartnerA
Image by MIT OpenCourseWare.
40. Domineering Leadership
•Actors play same roles
over time…
•…fails to involve many
valuable employees in
dominated firm
Phase N
Phase N+1
Image by MIT OpenCourseWare.
42. Rotating Leadership & Collaborative Innovation
•Leadership rotations
generate Fluctuating
Cascades of Social
Network Activation over
phases of Collaboration
•Varies team
composition
•Different people work at
different times…new
perspectives + needed
time for rest!
Phase N
Phase N+1
Image by MIT OpenCourseWare.
43. Looking Forward:
• Creating Value through Effective Organization:
– Organization Structure:
• Centralization is a key dimension of R&D structuring
• But there are many types of structure
• Amount of Structure as important as the type!
• Simpler strategies in more dynamic markets
– Organization Processes:
• Patching
• Co‐evolving
• Relationships and Collaborative Innovation:
– Rotating Leadership and Fluctuating Networks
• Next session we move to Value Capture & Abgenix
(biotech!)
